Marketing to Gen-Y

It appears, while throughout their adulthood beer has always been their alcoholic beverage of choice, wine is now top of their list. 

This has scared big international beer manufacturers such as Budweiser – a Tripp Mickle report for the Wall Street Journal found a staggering 44 per cent of people aged 21-27 had never even tried one of the world’s most famous beers. 

This, of course, is good news for the wine industry. Generation Y is a market that has never really been previously targeted. So, how do winemakers harness young people’s interest in their product, now Generation Y is not drinking Tui anymore?

Canadean Wine Report research suggests those in their 20s and 30s are now drinking twice as much wine by the volume than their parents did at the same age in the 1980s. This presents a unique opportunity for the wine industry, because studies show the desire to buy and consume the product is already there. 

“Newness” is perhaps the most important factor in gaining Generation Y’s attention with your wine. This generation is one fuelled by the always-on connectivity of the internet age, whereby “new” is intrinsically interesting. 

Generation Y doesn’t naturally place trust in the experts, either – so wine masters’ thoughts on your new Pinot Noir are not necessarily going to result in a sale to a 25-year-old. They rely on each other to inform what products are trending; if one Generation Y person discovers a great, new wine, they will share its name with their friends. 

Pushing out new products doesn’t mean creating new varietals (e.g. Sauvignon Gris), it means ensuring you have fresh stock on the shelves every season with updated branding (e.g. labelling and packaging). Many winegrowers rely on graphic design they had done in the 1990s that doesn’t speak to a modern generation of wine drinkers. 

However, you need to find a balance –update your logos every year or two and your brand will appear in desperate trouble; as if it’s pulling out all the stops in order to get new customers. 

Instead, enlist a modern graphic design company to revisit your labelling every five years (Generation Y likes bold and creative graphics, not antiquated imagery of rolling hills), and make minor changes each year with every vintage. For example, labelling changes as simple as a new font colour for a special vintage, or a packaging change such as a new icon on your bottle top for a limited edition run, appeal to the hunger for newness that Generation Y enjoys. 

Don’t forget to think past the standard 750ml bottle, too. Packaging wine in boxes, aluminium bottles, and other innovative ways will make them stand out from the crowded supermarket aisles.    

Marketing under “never before heard of” sub-brands also appeals to Generation Y. In a survey by the Wine Market Council, 85 per cent of Generation Y either frequently or occasionally purchases wine they are unfamiliar with. 

This is a generation that doesn’t have favourites; instead, it is interested to drink as wide a variety of different products as possible. Again, this doesn’t necessarily mean you need to produce revolutionary new products, as sub-branded products, under a different name and at different price points to your usual stock, may gain Generation Y interest. 

Of course, in doing this you need a good story. For the same reason they go to Farmer’s Markets in cities, and buy ethically-sourced clothing, Generation Y loves wines that are made with “passion”. 

This is a generation that likes to know who makes their wine and what the tale behind it is – in the same way they like to know where their tomatoes were grown or where their shoes were made. If you’re a former high-flying CEO or a well-known restaurateur who has settled down in Hawke’s Bay to make your favourite wine, tell that story on your labelling. 

Generation Y will also take more interest in “Mum and Dad” and family-run wineries over brands owned by the large corporate players. If it’s artisanal in any way, it has more authenticity and is thus more interesting to the Generation Y consumer. 

Organic wine is touted as the biggest trend for the years to come, and this is in part because of Generation Y’s belief in the importance of it for the long-term future. This generation has grown up sceptical about mass production, genetic modification, herbicides, and pesticides, and any effort to get away from these will be welcomed by Generation Y. Whether true or not, it is assumed by Generation Y that a wine without additives or manipulation will taste better. 

Lincoln University research suggests Generation Y is drinking more red wine than Generation X (those born in the late 1960s and 1970s) was at the same age. While this generation are still predominately drinking white and sparkling wines, this means your crimson-coloured products shouldn’t be exclusively marketed towards older generations. While a taste for red wine generally takes time to develop, we should assume Generation Y’s tastebuds are developing faster than you might think. 

Price, inevitably, is going to come into play when marketing wine to a younger cohort of consumers. 

The Centre for Wine Research in Neustadt, Germany found the most important factors in selling wine to Generation Y to be label design, information on label (including “the wine story”), and cost of the bottle. 

Canadean Wine Report research suggests (American) Generation Y wine drinkers usually place a $20 limit on the purchase price of a bottle of wine at a supermarket. While no New Zealand-specific research exists, this may be a wise price point to use in marketing to the same generation in this country. 

Generation Y expects more from their wine producers than other generations ever have, too. Connecting with them via social media means more than just having a static Facebook page; it means running a suite of social networks (Facebook, Twitter, Instagram, Tumblr are some examples) and updating them regularly not just with product promotion, but with interesting wine-related information that Generation Y will value. 

For example, links to media stories on matching wine with specific “youthful” foods like burgers, will be seen as “highly clickable” by Generation Y. Likewise, information about unconventional wineries as wedding venues will be of interest (remember, this is a generation that is now getting married). 

Also, remember Generation Y will want to engage with you, the winemakers, in two-way conversation through social media. That means replying to Tweets and direct messages, for example, when you receive queries about your product. This is not a generation that will pick up the phone and call you for information about where your product is stocked. 

Generation Y may be a demanding bunch. While Canadean Wine Report research maintains it is Baby Boomers who continue to be the biggest drinkers of wine, this is not a trend that will go on forever. 

Winemakers should ensure they spread their marketing efforts and ensure the newest generation of enthusiastic wine drinkers is catered for.